ALPS ALPINE CO., LTD.
6770・Prime Market・Electric Appliances
Business
Alps Alpine develops approximately 15,000 types of products and services across 183 sites in 23 countries, centered on three core businesses: electronic components such as switches, sensors, and communication devices (Components Business); sensors and communication devices (Sensors & Communications Business); and modules and systems such as in-vehicle infotainment, displays, and sound (Mobility Business). Major customers include leading smartphone manufacturers such as Apple Inc., major automakers (Tier 1) in Japan, North America, and Europe, global automotive parts manufacturers (Tier 2), and gaming device and home appliance manufacturers, among others. Consolidated net sales for FY2026 (ending March 2026) were ¥1,019,459 million.
Business Model
In the automotive market, the company operates a Tier 1 business delivering custom-designed products based on contract development with vehicle manufacturers, as well as a Tier 2 business supplying custom and standard products to parts manufacturers. In the mobile market, it supplies electronic components to major smartphone manufacturers such as Apple Inc., with sales to this customer reaching ¥236,625 million (23.2% of total revenue) in FY2026 (ending March 2026). The company has established an integrated system covering order-based development, mass production, and global supply for each business, generating ¥95,900 million in cash flow from operating activities.
Company Strengths
Sales to Apple Inc. amounted to ¥236,625 million in FY2026 (ending March 2026), up 3.5% year on year, accounting for 23.2% of consolidated net sales. Sales of mobile-related products in the Components Business have expanded steadily over multiple periods, with long-term business relationships with major customers supporting the stability of earnings.
The company operates 183 sites across Japan, North America, Europe, China, and Asia, running multiple manufacturing subsidiaries in China alone. It also maintains production bases in Mexico, the Czech Republic, Hungary, and other countries, building a supply framework located close to customers' production sites. This wide-ranging network underpins its ability to respond to diverse customers and markets.
The company possesses multimodal sensing as a core technology, integrating five-sense elemental technologies including magnetics, radio waves, electrostatics, acoustics, and actuation, and is advancing product development that combines this with its proprietary IC design technology. It is also making advance investments in next-generation technologies, such as the development of magnetic sensors using quantum materials through joint research with the University of Tokyo. R&D expenses amounted to ¥21,927 million in FY2026 (ending March 2026).
ENVALITH's Perspective
Performance Trend
Revenue rose from ¥802,854 million (FY2022) to ¥1,019,459 million (FY2026), marking five consecutive fiscal years of growth. Operating profit fell to ¥19,711 million in FY2024 before recovering for two consecutive fiscal years to ¥34,106 million in FY2025 and ¥42,043 million in FY2026. The operating margin for FY2026 improved to 4.1% (from 3.4% in the prior period). As an external factor, the impact of reduced production by Japanese, European, and U.S. automakers in the Chinese market persisted this fiscal year as well, but this was offset by steady growth in the Tier 2 business and expanding demand in the mobile and consumer markets. Meanwhile, profit attributable to owners of parent declined 29.0% year on year to ¥26,879 million, clearly reflecting the drop-off of the extraordinary gain recorded in the prior period. Operating cash flow improved significantly to ¥95,926 million from ¥65,817 million in the prior period, indicating enhanced cash-generating capability.
Growth Strategy
Medium-term management plan 2027 centered on improving Mobility Business profitability, investing in the Sensors domain, and ROIC-based management
Promoting a shift toward high-value-added products centered on the digital cabin domain, withdrawal from unprofitable products, selection and concentration of the product portfolio, and reorganization of production sites. In FY2026 (ending March 2026), an impairment loss of ¥4,201 million was recorded to dispose of low-profitability assets such as sound products. The operating profit forecast for this business in FY2027 (ending March 2026) is ¥19.0 billion (up 34.3% year on year).
As the core of "preparing the next mainstay business" under the Medium-Term Management Plan 2027, capital and human investment in the Sensors & Communications Business is being strengthened. The increase in tangible and intangible fixed assets for this business in FY2026 (ending March 2026) was ¥7,918 million. For FY2027 (ending March 2027), net sales of ¥87.0 billion and operating profit of ¥0.5 billion (turning profitable) are forecast, with losses continuing to narrow.
Promoting thorough investment decision-making and business portfolio management centered on ROIC. Shareholder returns target a DOE of approximately 3%, with an annual dividend of ¥62 (payout ratio of 46.0%) planned for FY2026 (ending March 2026) and ¥64 for FY2027 (ending March 2027). In FY2026 (ending March 2026), share buybacks of ¥20,003 million were conducted to improve capital efficiency. The market-value-based equity ratio rose to 51.9% (from 42.2% in the previous fiscal year).
Last updated: July 19, 2026